We are embarking on pension reforms in Liberia–VonBallmoos

He is astonishingly skilful in fielding questions. He has succeeded in beefing-up the profile of his organization, particularly by expanding its investments nation-wide. Dewitt VonBallmoos is the Director General of Liberia’s National Social Security and Welfare Corporation NASSCORP. Tall and fair in complexion, he spoke to ABUBAKAR HASHIM about the current reforms on-going, the investments of NASSCORP and other related issues
When you look back, what has been the journey, in terms of your achievements and challenges?
We took over the leadership of National Social Security and Welfare Corporation (NASSCORP) in 2006 when President Sirleaf first came to power, I was the Deputy- Director General. We met a completely devastated, empty shell of a corporation. Clearly this was after the war period, understandably, the challenges were apparently the same throughout the country. The human resource and, capital capacity were lacking. Even though NASSCORP was established in 1975, and the pension fund in 1988, when we came in, we met almost zero balances. We met only $645,000 and 5 Million Liberian Dollars. There was a back- log of pensions to be paid. We met these challenges and took it head long. First, we had this place automated. Ten years later, we can boast second to non, customized social security automated system. We have won awards from the International Social Security Association (ISSA), a global body, for this process.
Its been a long ten years, we had gradually groomed, from an operational budget of 2m to now a budget of over 30m dollars, in ten years.
NASSCORP is a pension fund. We are all over the country. We are in eight of the counties. Some counties serve other counties, based on economic activities. We have raised our staff level, salaries and standards of living. We have all pensioners paid up- to- date by the 15th of every month. We have about 7,000 plus pensioners that are paid by 15th of every month, through the various banks in the country. With the automated system, all these beneficiaries have bank accounts.
We have also done a lot of investments, mainly in real estate, due to prevailing situation in the country. We are still a new trust fund. So in relation to other African countries, we are relatively young. As we grow, we will increase our investment profile. We have investments in Grand Bassa County, in Lofa county, in Magib and in, Kakata. Our largest investment is the Liberia Revenue Authority (LRA) building here in Monrovia. As we speak, we are almost completing our new headquarters building at 24th Street, Sinkor and simultaneously, constructing a first class Diagnostic Centre, which will be ready by July next year.
We have also partnered with the National Housing Authority to construct Low Cost Housing for the general population. This is in line with the vision of the present government, to make housing affordable to the vast majority of Liberians. It is in joint collaboration with the Liberian Bank for Development and Industries (LBDI).
We are in process of having a pension reform. The laws were done in 1975 and 1988. They need to be reformed to meet the present situation. This reform will increase our efficiency.
Could you please explain this pension reform?

You see, what was applicable, say in 1975, clearly need to be changed. We are taking it up to Madam President, for onward presentation to the legislature for appropriate amendment. Areas of reform like the contribution rates need to be adjusted. The vesting period need to be adjusted.
All these need to come in conformity with what prevails in the region. Liberia, as we speak, is the lowest in the region, particularly in these areas of contributing and vesting rates. In fact, these areas are subject to review every five years, because it has to be relative to be prevailing situation. Hopefully, before the end of the year, we will have achieved these reforms.
What are your challenges so far?

Our basic challenge so far is getting our pay rolls. Because we’ve automated our system permits us to get our pay rolls from employers electronically and distribute payments electronically to individuals’ accounts. For instance, an employer will send in a cheque of say, $10,000 for employees. But who are these employees? So submission of pay roll by employers is a formidable challenge. The details of employees are lacking.
The other challenge is defaulting employers. Defaulting put the work force at risk. So also their pensions will be at risk. You also have employees that do not remit. So it is our responsibility to find out these discrepancies and normalize them.
What is your relationship with other Social Security Corporations in Africa and in the Sub-Region?
As we speak, the head of the Social Security in Nigeria and I are on the committee of ISSA. We meet twice a year. We have a cordial relationship with Sierra Leone, Ghana and others, particularly in training. So also with the Gambia.

Culled from News

Protesting pensioners, students ground Owerri On June 16, 20166:19 amIn NewsComments By Chidi Nkwopara & Chinonso Alozie OWERRI—Traffic was held for several hours, yesterday, in Owerri, especially at the Wetheral/Okigwe Road roundabout, following the peaceful protest carried out by scores of senior citizens in Imo State. Some of the angry retirees, including the State Chairman of Nigerian Union of Pensioners, NUP, Chief G. Ezeji, who defied the heavy downpour experienced in the municipality, told Vanguard that they were prepared to remain at the roundabout for as long as their failing health could allow. The angry pensioners, who rebuffed entreaties by the state Commissioner of Police, Mr. Taiwo Lakanu, virtually chased away the Commissioner for Internally Generated Revenue and Pension Matters, Dr. Vitalis Ajumbe, insisting that they wanted to hear directly from the governor. The situation became more complex when students joined the protest, as they equally outlined a litany of their worries. Chief Ezeji narrated how their plight started: “When the present Imo State government came on board on May 29, 2011, the citizens, including the Imo pensioners whole-heartedly welcomed and supported the government of Governor Rochas Okorocha. “On July 18, 2011, he hosted the Imo pensioners at Dan Anyiam Stadium, Owerri, and commenced the payment of three months arrears of pension owed to civil service workers. That was his first act of friendship towards the senior citizens of Imo State. “He paid the civil pensioners their monthly pension up to December 31, 2014. As for the local government pensioners, he paid them their monthly pension up to December 31, 2014. The retired primary school teachers were paid up to March 2014.” Our challenges “Ironically, he started owing the civil pensioners from February 2015 and now owes them 16 months from February 2015 to May 31, 2016. The local government pensioners are now owed 26 months from March 2014 to May 2016. The IBC pensioners are now owed 36 months. The Alvan Ikoku College of Education retirees are owed 68 months. “The state government is also not paying gratuities to pensioners that are retiring weekly, monthly and yearly. The present Imo State government has refused to harmonize pensions based on Federal Government pension award of six per cent in 2003, and 15 per cent Federal Government award of 2007, as well as 33 per cent Federal Government award of 2011. “The Imo State pensioners are still receiving pensions based on Chief Olusegun Obasanjo minimum wage of N7, 500 awarded on 2000. “The harmonization arrears accruing from the Abdulsalami Abubakar and Obasanjo awards totaling 73 months are unpaid to Imo pensioners. The retired permanent secretaries of Imo State are equally suffering with the civil service pensioners in all the problems listed above.” Genesis of our problems Pensioner-slumps-400x232“When the governor stopped paying us the listed entitlements, we decided to bear with him because of the campaign era and voted for him en masse. Immediately, after his victory at the poll, the union congratulated him and that was followed by a paid advert in a local newspaper, during his swearing-in as governor for the second tenure. “The union wrote and enumerated the problems of Imo pensioners to the governor on May 25, 2015. In the said letter, we sought for audience with the governor on June 10, 2015, but ironically the said letter was not acknowledged and audience not granted till today. On the whole, government only paid about 305 pensioners last October 2015. “As at today, the pensioners are owed between 16 and 38 months arrears. All efforts made for governments to change its policy of starving the pensioners to death has not yielded any fruit. “Retired teachers, retired local government pensioners, civil service pensioners, including Alvan Ikoku College of Education retirees, Imo Broadcasting Corporation, IBC, retirees and retired Permanent Secretaries are suffering untold hardship as a result. A good number of pensioners have died of hunger and diseases. Our demands “The state government verified pensioners in 2011. Again in 2014, during the tenure of the maiden Commissioner for Internal Resources and Pensions, Chief Nick Oparandudu, the Imo Pensioners were verified for the third time in 2015, under the supervision of the Chairman, Local Government Service Commission. That was followed by the 4th verification in all the community government councils. “Also from November 30, 2015, government verified those that did not benefit from the payment made by the government in October 2015. With these listed verifications conducted by government, it is unfortunate that the same government is still talking of ghost pensioners. We thought that government, through these verification exercises, should by now come up with the list of ghost pensioners it alleged are on its payroll. “These notwithstanding, the leadership and members of the Nigeria Union of Pensioners, Imo State, is not against verification provided it goes with payment immediately to physically verified pensioners. The leadership and members of our union have demonstrated maturity and patience in our present situation. We call on the Imo State government to pay us our entitlements. “If South East states like Anambra, Enugu, Abia and Ebonyi without oil revenue are paying their senior citizens, it is incumbent on the governor of Imo State to follow suit. Why cannot Imo pay her citizens? We, therefore, call on the Imo State government to pay the accumulated arrears of pensions immediately. Students protest Meanwhile, the students of the Federal Polytechnic Nekede, Owerri, FEDPONEK, and Federal University of Technology Owerri, FUTO, have described the state government as being insensitive to their plights. The students numbering over 900, marched from their various institutions to the state capital, demanding that the government should come and make their roads motorable. They also displayed their placards which read, ‘We are dying here,’ ‘Where is the Rescue Mission?’ ‘Are these institutions not in Imo State, we are tired of promises,’ ‘Come and repair our roads,’ among others. Speaking to Vanguard, the Presidents of the Students’ Union Government, SUG, of FEDPONEK and FUTO, Comrades Ike Emmanuel and Ezenwa Obinna, respectively said that they would continue the protest until their demands were not only given attention but also solved.

Read more at: http://www.vanguardngr.com/2016/06/pensioners-students-ground-owerri/